Korean Tax Chief under investigation for bribing predecessor (See 'DDT')

HRA for civilian employees of the Central Government serving in the State and Union Territories of North Eastern Region including Andaman & Nicobar Island And Lakshadweep Island.;

Govt decides to allow FDI into facsimile edition of foreign newspapers and Indian edition of foreign magazines dealing with news;

Mobile telecom service: Value added service growing at 10% annually, says TRAI;

Challenge Fund for export promotion by Indian Missions set up with Rs 5 Cr ;

India, Nigeria to 'oil' cooperation to new horizons in hydrocarbon sector;

Sahar Airport Customs seizes white powder worth Rs7.5 lakh;

Govt refers Satyam issue to Serious Fraud Office; RBI likely to take adverse decision on PwC's alleged role in Satyam case

India, Canada sign MoU to better cooperation in agri sector;

PC hardens stand; India may snap business and transport links with Pak;

ddt 14 Jan.pdf

Commerce Ministry's Report Card on SEZs and Job Creation;

spl down.pdf

Satyam Nahin Jeyathe;

office_memorandum.pdf

HRA for civilian employees of the Central Government serving in the State and Union Territories of North Eastern Region including Andaman & Nicobar Island And Lakshadweep Island.;

mbuzz0046.pdf

Govt decides to allow FDI into facsimile edition of foreign newspapers and Indian edition of foreign magazines dealing with news;

mbuzz0045.pdf

Challenge Fund for export promotion by Indian Missions set up with Rs 5 Cr;

mbuzz0044.pdf

Mobile telecom service: Value added service growing at 10% annually, says TRAI;

mbuzz0043.pdf

India, Nigeria to 'oil' cooperation to new horizons in hydrocarbon sector;

mbuzz0042.pdf

India, Canada sign MoU to better cooperation in agri sector;

2009-TIOL-35-ITAT-AGRA-TM.pdf + TM story.pdf

M/s Pal & Pal Electromechanical (P) Ltd Vs CIT, Gwalior (Dated: November 28, 2008)

Income Tax - assessee was a manufacturer, not merely carrying on repair – Deduction under 80IA eligible - Revenue could not contend that sale-tax is payable on repair or on job work : The entire case could not be thrown out on the ground that assessee in the profit and loss account has stated sale receipts including of repair charges. The Judicial Member was not right in putting burden of proof on the assessee in proceedings u/s 263 and in not examining profit and loss account and balance sheet of the assessee and its claim that it was involved in the manufacture of electromechanical parts. The material available on record was also not examined in the light of the claim made by the assessee. The observations of the Judicial Member in the proposed order are also not factually correct.: AGRA ITAT (THIRD MEMBER) ;

2009-TIOL-34-ITAT-DEL.pdf + krbl story.pdf

M/s KRBL Limited Vs DCIT, New Delhi (Dated: May 30, 2008)

Income Tax - sale proceeds of special import license being in the nature of business income cannot be excluded under clause (baa) of the explanation to section 80- HHC ; the income arising on sale of special import license will be in the nature of business income. Under clause (baa) 90 per cent of the sums specified in clauses ( iiia ) to ( iiie ) of section 28 or any sum by way of interest, commission, brokerage, rent etc. or any amount of similar nature is to be excluded while computing business income for the purposes of deduction u/s 80HHC . The special import license is neither in the nature of sums specified in clauses ( iiia ) to ( iiie ) of section 28 nor does it represent the amount in the nature of interest, commission, brokerage etc. Therefore, the sale proceeds of special import license being in the nature of business income cannot be excluded under clause (baa) of the explanation to section 80- HHC of the Act. Further the expression "any other receipt of similar nature" included in such profits qualifies the receipts by way of brokerage, commission, interest, rent, charges. It does not refer to clauses ( iiia ) to ( iiie ) of section 28. Therefore, the SIL is neither a receipt of similar nature to export incentives nor to sums received by way of interest, commission, brokerage etc. Accordingly, clause (baa) of Explanation to Section 80- HHC of the Act will not be applicable.

Profit part of DEPB receipts to be excluded under clause (baa) of the Explanation and not the cost part of the DEPB receipts: It is clear that it is the profit part of DEPB receipts to be excluded under clause (baa) of the Explanation and not the cost part of the DEPB receipts. The expression "any other receipt of similar nature" included in such profits qualifies the receipts by way of brokerage, commission, interest, rent, charges and does not refer to clauses ( iiia ) to ( iiie ) of section 28, the face value of DEPB receipts will not fall in the ambit of clause (baa) of the Explanation.

Therefore, only 90 per cent of profit on transfer of DEPB will be excluded under clause (baa) of the Act and the cost part of the DEPB receipts. The export profit is computed under section 80- HHC (3) as per the method prescribed in clauses (a) to (c). The profits computed under clauses (a), (b) , (c) of section 80- HHC (3) is to be increased by the sums specified in proviso to section 80- HHC (3) of the Act. Third proviso to section 80- HHC ( 3) deals with the profit part of DEPB receipts and not the whole of the DEPB receipts.:DELHI ITAT;

2009-TIOL-33-ITAT-BANG.pdf

M/s Sandur Manganese And Iron Ores Ltd Vs ACIT, Bellary (Dated: December 31, 2008)

Income tax - assessee is into mining and manufacturing of ferro-alloys - makes payments to two schools - AO disallows the payment u/s 40A(9) on the ground that the schools were autonomous and the assessee had no control over their management and their admissions were not restricted to childeren of employees of the company - CIT(A) agrees with the AO - held, in view of the High Court decision, the disallowance u/s 40A(9) upheld - Assessee's appeal dismissed:BANGALORE ITAT;

2009-TIOL-32-ITAT-DEL.pdf

M/s Ranbaxy Laboratories Ltd Vs DCIT, New Delhi (Dated: December 31, 2008)

Income tax - assessee is a pharma manufacturer - contributes to a school for setting up a hospital - claims the same as revenue expenditure - AO disallows - held, the words "for the purpose of the business" should not be limited to the meaning of 'earning profit alone'. Business expediency or commercial expediency might require providing facilities like school, hospital etc. for the employees or their children or for the children of the ex-employees. Any expenditure laid out or expended for their benefit, if it satisfies, the other requirement, must be allowed as a deduction u/s 37(1) of the Act.:DELHI ITAT;

2009-TIOL-31-ITAT-MUM.pdf

M/s Bobcards Ltd Vs ACIT,Mumbai (Dated: November 21, 2008)

Income tax - assessee is a subsidiary of Bank of Baroda and is into the business of issuing credit cards - ties up with Master Card International and Visa International - makes payments but fails to deduct tax at source u/s 195 - AO invokes provisions of Sec 201 and Sec 201(1A) for default to deduct tax at source - CIT(A) allows - held, since the tax liability is not in dispute and the assessee claims that the same was paid by the deductee the assessee cannot be held in default but interest u/s 201(1A) is mandatory as per the High Court decision and the assessee cannot escape from it if there was any delay in payment of tax - matter remanded for examination of facts :MUMBAI ITAT;

SERVICE TAX SECTION

2009-TIOL-81-CESTAT-AHM.pdf

CCE, Vadodara Vs M/s Chandan Metal Products Pvt Ltd (Dated: December 1, 2008)

ST - Interior Decorator service - assessee is a manufacturer of iron and steel furniture - provides certain advisory to its client related to interior decoration - Revenue raises demand - Mere one-off advisory to a client does not make the assessee an Interior Decorator which is a service to be provided by professional and trained persons on regular basis

ST - Management Consultancy service - assessee provides such service to its client and bills them - Revenue raises demand - A stray case of management consultancy does not call for levying tax under this head:AHMEDABAD CESTAT;

2009-TIOL-80-CESTAT-AHM.pdf

M/s Sai Consulting Engineers Pvt Ltd Vs CST, Ahmedabad (Dated: December 4, 2008)

ST - pre-deposit ordered - modification application - assessee pleads reduction in pre-deposit on the ground of subsequent decision of the Tribunal - Since the case law referred has no relevance for the case and the Board Circular referred was also available at the time of hearing when no financial hardship pleaded, more time granted for pre-deposit:AHMEDABAD CESTAT;

2009-TIOL-79-CESTAT-DEL.pdf

M/s Shrinath Travel Agency Vs CCE, Jaipur-I (Dated: November 21, 2008)

ST - Tour Operator - assessee has 12 buses which ply as contract carriage - demand with penalty raised - assessee claims exemption and also refers to Sec 11C Notification granting partial relief to assessees - Matter remanded but since the issue has been lingering for long and Govt has issued Sec 11C notification, penalty cannot be imposed:DELHI CESTAT;

CENTRAL EXCISE SECTION

CIRCULAR

excircular880.pdf

Determination of the value of the excisable goods for the purposes of charging central Excise Duty in respect of industrial units located in Jammu & Kashmir and availing VAT remission vide SRO 91 dated 16.03.05;

CASE LAWS

2009-TIOL-86-CESTAT-MUM.pdf + batra story.pdf

Batra International Vs CCE, Thane-II (Dated: December 11, 2008)

Central Excise - Whether penalty under rule 26 of CER, 2002 can be imposed against persons who have not dealt with any goods - Matter referred to President on account of difference in opinion :MUMBAI CESTAT;

2009-TIOL-85-CESTAT-MUM.pdf

CCE, Nagpur Vs Raymond Ltd (Dated: October 24, 2008)

Central Excise – Credit of tax paid on outdoor catering services allowable – Larger Bench decision in GTC Industries [ 2008-TIOL-1634-CESTAT-MUM-LB ] followed – Revenue appeal devoid of merits :MUMBAI CESTAT;

2009-TIOL-84-CESTAT-MUM.pdf

CCE, Raigad Vs M/s Maharashtra Seamless Ltd (Dated: October 24, 2008)

Central Excise – Interest liability cannot be discharged through CENVAT Credit A/c – Interest payment to be made through PLA/cash only – Appellate Commissioner's order set aside:MUMBAI CESTAT;

CUSTOMS SECTION

CIRCULAR

cuscir09_001.pdf

Examination norms for goods exported under Reward Schemes– reg.;

Instruction.pdf

Export of Sugar – Re-introduction of the system of export release orders w.e.f. 1.1.2009 for exports under OGL – reg.

CASE LAWS

2009-TIOL-83-CESTAT-MUM.pdf

M/s Dinesh Agro Products Limited Vs CCE, Pune III (Dated: October 14, 2008)

Customs – 100% EOU – When factory is closed and plant & machinery rusted and obsolete, possibility of fulfilling export obligation at future date does not arise – Bond and back guarantee also not extended – Primafacie violation of notification – Pre-deposit of Rs. 1.25 crores ordered within eight weeks – Balance of duty and penalty stands waived and stay granted subject to pre-deposit:MUMBAI CESTAT;

2009-TIOL-82-CESTAT-MUM.pdf

CC, Mumbai Vs Inox India Ltd (Dated: October 20, 2008)

Customs – No evidence on record to suggest import price arrived at after negotiations – Enhancement of unit price of imported goods by original authority upheld – Order of Appellate Commissioner set aside:MUMBAI CESTAT;